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We heard in the Chancellor's Budget that the economy is picking up but for many individuals the reality is very different. Money is still extremely tight and it will take much longer for them to feel like they've finally got a hold of their finances.

Those relying on credit of some kind to pay their way need to start doing all they can to break that habit and get themselves into the black. It is encouraging to see that some people have recognised this and are seriously committed to clearing their debt, and using cost saving measures to do this. Debt needs to be tackled head on; simply working out a realistic monthly budget and cutting out unnecessary expenditure should be the first step.

A survey has found that people who are already in debt expect to turn to more borrowing to make through the year. The MoneySuperMarket poll found that:

Of those with existing unsecured borrowing such as credit cards, overdrafts or loans, 30% will move even further into the red to cope this year

6% of those in debt expect to have to spend more simply to cover their essential monthly outgoings

Almost one in ten (8%) will pay for their transport costs on plastic

6% will use credit cards to cover their utility bills

Where possible however, some people are taking necessary action to attempt to pay off their debts, with almost a third (30%) paying what they can each month to try and clear the deficit as quickly as possible.